Updated Jan 12, 2021 | 07:23 IST
Recurring deposit accounts in post offices are a good option for people wanting investment options for short-term financial goals Have a post office RD account? Know how to deposit money online
The post office offers a recurring deposit saving scheme which is one of the safest alternatives to traditional fixed deposit saving schemes. Under fixed deposit, you have to deposit a lump-sum amount all at once and you receive a fixed rate of return on that deposited money. If you open an FD account, you can break it only after the maturity period otherwise you are charged some penalty. Under recurring deposit, you can tackle some of the drawbacks of the FD account. If you open a recurring account with the bank then your minimum deposit could be as small as 500 and in the case of post offices, it’s even lower. In an RD account, the deposits can be made monthly or quarterly as per the provisions of the scheme.